Sri Vijayawada Distributors vs Assistant Commissionerstate Tax on 9 January, 2025

Summary of High Court Order

Case Title: Sri Vijayawada Distributors vs Assistant Commissioner (State Tax) & W.P. No. 18690 of 2024 (Representative title for a batch of 35 writ petitions heard together).
Court: High Court of Andhra Pradesh
Date of Order: 9 January, 2025
Coram: The Hon’ble Chief Justice Dhiraj Singh Thakur & The Hon’ble Sri Justice R Raghunandan Rao

1. Outcome

This is not a final judgment but a procedural order. The High Court adjourned the hearing for a batch of related writ petitions to 24 April, 2025, due to a lack of time. The Court directed that any interim orders previously granted (such as a stay on recovery of tax demand) shall remain in effect until the next hearing date.

2. Core Issue

The central legal question across these petitions is the constitutional validity and legality of notifications issued under Section 168A of the CGST/APGST Act, 2017, which extended the statutory time limits for completing adjudication proceedings under Section 73 for the financial years 2017-18, 2018-19, and 2019-20.

The petitioners contend that these extensions were an invalid exercise of power, rendering the subsequent assessment orders and show-cause notices time-barred and without jurisdiction.

3. Key Facts

• The Central Government (via CBIC) and the State of Andhra Pradesh issued notifications (notably Notification No. 9/2023-Central Tax and 56/2023-Central Tax, and corresponding State G.O.s) invoking powers under Section 168A of the GST Acts.
• These notifications extended the deadline for issuing adjudication orders under Section 73(10) for multiple financial years, citing disruptions caused by the COVID-19 pandemic as a force majeure event.
• Relying on these extended timelines, GST authorities issued show-cause notices and passed assessment orders against the various petitioners, demanding tax, interest, and penalties for the said years.
• The petitioners, a group of diverse businesses, filed these writ petitions challenging the legality of the time-limit extensions and the consequential demands raised against them.
• The High Court clubbed these petitions for a common hearing due to the similarity of the core legal challenge.

4. Arguments (Petitioners)

The arguments, as gleaned from the prayers in the writ petitions, are as follows:
* Ultra Vires the Act: The notifications extending the limitation period are ultra vires Section 168A of the CGST Act. The power under Section 168A is an extraordinary power to be used only when it is impossible to perform an action due to a force majeure event.
* No Existing Force Majeure: Invoking the COVID-19 pandemic in 2023 to extend limitation periods is arbitrary, as normalcy had been restored and there was no "impossibility" preventing the tax authorities from completing assessments within the original statutory deadlines.
* Violation of Constitutional Rights: The extensions are manifestly arbitrary and violate the fundamental right to equality under Article 14 of the Constitution.
* Time-Barred Proceedings: As the extensions are illegal, the assessment orders passed and notices issued after the original statutory deadline under Section 73(10) are barred by limitation and are therefore void and non-est in law.
* Other Challenges: Some petitions also challenge the constitutionality of Section 16(2)(c) and Section 16(4) of the CGST Act, which place conditions on the availment of Input Tax Credit (ITC).

(Note: The provided text does not contain the counter-arguments of the Respondent Tax Authorities.)

5. Court’s Reasoning

The Court has not provided any reasoning on the merits of the case. The order explicitly states that the adjournment is due to "paucity of time." The decision was purely procedural to schedule the matter for a future date while protecting the petitioners' interests by continuing the interim relief.

6. Statutory References

• Constitution of India: Articles 14, 19(1)(g), 21, 226, 265, 300-A.
• Central Goods and Services Tax (CGST) Act, 2017: Sections 16(2)(c), 16(4), 73, 73(10), 74, and crucially, Section 168-A (Power of Government to extend time limits in special circumstances).
• Andhra Pradesh Goods and Services Tax (APGST) Act, 2017: Primarily Section 168-A and corresponding provisions.
• Notifications and G.O.s:
  • Notification No. 9/2023-Central Tax, dated 31.03.2023
  • Notification No. 56/2023-Central Tax, dated 28.12.2023
  • G.O. Ms. No. 221 (Andhra Pradesh), dated 17.05.2023
  • G.O. Ms. No. 2 (Andhra Pradesh), dated 03.01.2024

7. Precedents Cited

• India Cements Ltd. vs. Collector of Central Excise, (1990) 1 SCC 12 (Referenced in WP No. 13524/2024 and 16871/2024).